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February 3, 2021

Know Income Tax Rates for FY 2021-22 AY 2022-23

by Mahesh Mara in Budget, Income Tax

Know Income Tax Rates for FY 2021-22 AY 2022-23

Rate of tax for Individuals

As per Budget 2021 no changes has been made in slabs of individuals. Below is the applicable slab rates as per Budget 2021 for FY 2021-22.

For Individuals of age upto 60 years

If the individual opts for new tax regime then has to pay tax as per the
below slab rates:

SI

Total Income

Rate of Tax

1

Up to Rs. 2,50,000

Nil

2

From Rs. 2,50,001 to Rs.
5,00,000

5 per cent.

3

From Rs. 5,00,001 to Rs.
7,50,000

10 per cent.

4

From Rs. 7,50,001 to Rs.
10,00,000

15 per cent.

5

From Rs. 10,00,001 to Rs.
12,50,000

20 per cent.

6

From Rs. 12,50,001 to Rs.
15,00,000

25 per cent.

7

Above Rs. 15,00,000

30 per cent.

If the individual opts for old tax regime then has to pay tax as per
below slab rates:

SI

Total Income

Rate of Tax

1

Up to Rs. 2,50,000

Nil

2

From Rs. 2,50,001 to Rs.
5,00,000

5 per cent.

3

From Rs. 5,00,001 to Rs.
10,00,000

20 per cent.

4

Above Rs. Rs. 10,00,000

30 per cent.

For Individuals of age from 60 years upto 80 years (Senior Citizens)

If the individual opts for new tax regime then has to pay tax as per the
below slab rates:

SI

Total Income

Rate of Tax

1

Up to Rs. 2,50,000

Nil

2

From Rs. 2,50,001 to Rs.
5,00,000

5 per cent.

3

From Rs. 5,00,001 to Rs.
7,50,000

10 per cent.

4

From Rs. 7,50,001 to Rs.
10,00,000

15 per cent.

5

From Rs. 10,00,001 to Rs.
12,50,000

20 per cent.

6

From Rs. 12,50,001 to Rs.
15,00,000

25 per cent.

7

Above Rs. 15,00,000

30 per cent.

If the individual opts for old tax regime then has to pay tax as per
below slab rates:

SI

Total Income

Rate of Tax

1

Up to Rs. 3,00,000

Nil

2

From Rs. 3,00,001 to Rs.
5,00,000

5 per cent.

3

From Rs. 5,00,001 to Rs.
10,00,000

20 per cent.

4

Above Rs. Rs. 10,00,000

30 per cent.

For Individuals of age above 80 years (Super Senior Citizens)

If the individual opts for new tax regime then has to pay tax as per the
below slab rates:

SI

Total Income

Rate of Tax

1

Up to Rs. 2,50,000

Nil

2

From Rs. 2,50,001 to Rs.
5,00,000

5 per cent.

3

From Rs. 5,00,001 to Rs.
7,50,000

10 per cent.

4

From Rs. 7,50,001 to Rs.
10,00,000

15 per cent.

5

From Rs. 10,00,001 to Rs.
12,50,000

20 per cent.

6

From Rs. 12,50,001 to Rs.
15,00,000

25 per cent.

7

Above Rs. 15,00,000

30 per cent.

If the individual opts for old tax regime then has to pay tax as per
below slab rates:

SI

Total Income

Rate of Tax

1

From Rs. 5,00,001 to Rs.
10,00,000

20 per cent.

2

Above Rs. Rs. 10,00,000

30 per cent.

Rate of tax for Association of Person and Body of Individuals

As per section 167B the following is the rate of tax for AOP/ BOI:

a. In case the shares of the members are known and if all members are having Net Taxable income is up to basic exemption limit and none of the member is a foreign company then the income is taxed at slab rate

b. In case the shares of the members are known and if one or more member’s net taxable income is more than basic exemption limit and none of them is foreign company then the tax the entire income at Maximum Marginal rate i.e. 42.744%

c. In case the shares of the members are unknown then the tax the entire income at Maximum Marginal rate i.e. 42.744%.

Note:

  1. At the time of computing the net total income of member his share from AOP/ BOI is excluded
  2. Loss of AOP/ BOI shall be carry forward by such AOP/BOI only
  3. LTCG shall be taxed at 20% and STCG 111A at 15% for AOP/BOI

Rate of tax for Cooperative Society

In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part I of the First Schedule to the Bill. They remain unchanged as below:

Slab of Income

Rate

Upto Rs. 10,000

10%

10,001 to 20,000

20%

Above 20,000

30%

Rate of tax for Firms:

In the case of firms, the rate of income-tax has been specified in Paragraph C of Part I of the First Schedule to the Bill. They remain unchanged. Income of Partnership firms and LLP shall be taxable at the rate of 30%.

Note: LTCG shall be taxed at 20% and STCG 111A at 15% for firm

Rate of tax for Local authorities

The rate of income-tax in the case of every local authority has been specified in Paragraph D of Part I of the First Schedule to the Bill. They remain unchanged at 30%.

Rate of tax for Companies

The rates of income-tax in the case of companies have been specified in Paragraph E of Part I of the First Schedule to the Bill.

 

Type of company

Rate of tax

Domestic company (If turnover for FY 2018-19 is up to 400 Crores)

25%

Domestic Company (Others)

30%

Foreign Company

40%

Note:

 

All of the above tax calculated shall be further increased by health and education cess of 4%

Surcharge

Surcharge in case of every Individual or HUF:

In the case of individual or every association of person or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act having income under section 115AD of the Act,-

(i) Having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent of such income-tax; and (ii) having a total income exceeding one crore rupees but not exceeding two crore rupees, at the rate of fifteen per cent of such income-tax;

(iii) having a total income [excluding the income by way of dividend or income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding two crore rupees but not exceeding five crore rupees, at the rate of twenty-five per cent of such income-tax;

(iv) having a total income [excluding the income by way of dividend or income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding five crore rupees, at the rate of thirty-seven per cent. of such income-tax;

(v) having a total income [including the income by way of dividend or income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding two crore rupees but is not covered in sub-clauses (iii) and (iv), at the rate of 15% of such income-tax:

Provided that in case where the total income includes any income by way of dividend or income chargeable under clause (b) of sub-section (1) of section 115AD of the Act, the rate of surcharge on the income-tax calculated on that part of income shall not exceed fifteen percent;

Surcharge in case of firms:

In case of firm 12% surcharge will be levied if Net total income exceeds Rs. 1 Crore.

Surcharge in case of Cooperative Society

a) In the case of every co-operative society (except resident co-operative society opting under section 115BAD) or firm or local authority, at the rate of twelve per cent of such income-tax, where the total income exceeds one crore rupees;

(b) In case of resident co-operative society opting under section 115BAD, at the rate of ten percent of such income tax.

Surcharge In Case Of Company

Type of CompanyRate
Domestic with income upto Rs. 1 Crore but not exceeding Rs. 10 crore7%
Domestic with income exceeding Rs. 10 crore12%
Company exercising option under section 115BAB and 115BAA10%
Foreign with income upto Rs. 1 Crore but not exceeding Rs. 10 crore2%
Foreign with income exceeding Rs. 10 crore5%

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